On my '93 it is in the outside passenger foot panel at the top. Underneath and behind the glove box. Gray in color.
Yes, cut the red wire.
Probably a short in the system somewhere, good luck with finding it.
Something wrong with your alarm system, like not working maybe.
No
go to markviii.org. they have a answer for almost anything with the lincoln mark viii
To turn off the alarm on a 1996 Lincoln Mark VIII, you can try unlocking the driver's side door with the key or using the remote key fob if available. If the alarm continues to sound, you can also disconnect the battery for a few minutes to reset the system. Ensure to reconnect the battery afterward and check if the alarm functions normally. If problems persist, consult the owner's manual or a professional for further assistance.
There are two models of the Lincoln Mark VIII. The base or standard MARK VIII and the Mark VIII LSC. The LSC was introduced halfway through the 1995 model year, and continued to the end of the Mark VIII production. SRS refers to the SUPPLIMENTAL RESTRAINT SYSTEM (air bags). This is why you may see the letters SRS on the panel above the glove box area and on the steering wheel horn pad.
Where to find the horn relay fuse for a 93 Lincoln Mark VIII
Not that I'm aware of just the compass.
On my 1993 Lincoln Mark VIII had the same problem. Apparently several things can cause this, but this is what worked for my car. Under the hood on the passenger side there is a switch fastened to the frame, it's about halfway between windshield and front of car. We removed the bolts holding the switch, turned the switch upside down, then replaced the bolts. The alarm system still works and it hasn't gone off randomly since then. Good luck!
no
Not unless you try to change the whole front end of the car.